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[Federal Register Volume 89, Number 247 (Thursday, December 26, 2024)]
[Rules and Regulations]
[Pages 104878-104882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30420]

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TENNESSEE VALLEY AUTHORITY

18 CFR Part 1304

RIN 3316-AA25

Floating Cabins

AGENCY: Tennessee Valley Authority.

ACTION: Final rule.

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SUMMARY: The Tennessee Valley Authority (TVA) is publishing a final 
rule to amend its regulations that govern floating cabins located on 
the Tennessee River System.

DATES: This final rule is effective January 27, 2025.

FOR FURTHER INFORMATION CONTACT: David B. Harrell, 865-632-1327, 
[email protected], Mail address: Tennessee Valley Authority, Attn: 
Floating Cabins, 400 West Summit Hill Drive, WT 11A-K, Knoxville, TN 
37902.

SUPPLEMENTARY INFORMATION:

Legal Authority

    This final rule is promulgated under the authority of the TVA Act, 
as amended, 16 U.S.C. 831 et seq. and OMB Circular No. A-25. Under 
Section 26a of the TVA Act, no obstructions affecting navigation, flood 
control, or public lands or reservations shall be constructed, 
operated, or maintained across, along, or in the Tennessee River System 
without TVA's approval. TVA has long considered nonnavigable structures 
such as floating cabins to be obstructions that require its approval. 
In addition, Section 9b of the TVA Act (16 U.S.C. 831h-3) provides that 
TVA may require floating cabins to be maintained by the owner to 
reasonable health, safety, and environmental standards.

Background

    TVA is a multi-purpose federal agency that has been charged by 
Congress with promoting the wise use and conservation of the resources 
of the Tennessee Valley region, including the Tennessee River System. 
In carrying out this mission, TVA operates a system of dams and 
reservoirs on the Tennessee River and its tributaries for the purposes 
of navigation, flood control, and power production. Consistent with 
those purposes, TVA uses the system to improve water quality and water 
supply and to provide a wide range of public benefits including 
recreation.
    To promote the unified development and regulation of the Tennessee 
River System, Congress directed TVA to approve obstructions across, 
along, or in the river system under Section 26a of the TVA Act. 
``Obstruction'' is a broad term that includes, by way of example, boat 
docks, piers, boathouses, buoys, floats, boat launching ramps, fills, 
water intakes, devices for discharging effluents, bridges, aerial 
cables, culverts, pipelines, fish attractors, shoreline stabilization 
projects, channel excavations, and floating cabins. TVA also owns, as 
agent for the United States, much of the shoreland and inundated land 
along and under its reservoir system.
    Since 1971, TVA has used its Section 26a authority to prohibit the 
mooring on the Tennessee River System of new floating cabins (formerly 
nonnavigable houseboats) that are designed and used primarily for 
habitation and not for water transportation. In particular, TVA amended 
its regulations in 1971 to prohibit the mooring or anchoring of new 
nonnavigable houseboats except for those in existence before November 
21, 1971. Since 1971, TVA has made minor changes to its regulations 
affecting nonnavigable houseboats, including in 1978 when TVA 
prohibited mooring of nonnavigable houseboats on the Tennessee River 
System except for those in existence on or before February 15, 1978. 
Effective October 1, 2018, TVA updated its regulations to change the 
terminology to floating cabins (rather than nonnavigable houseboats) 
and prohibit new floating cabins that did not exist on the Tennessee 
River System on or before December 16, 2016.
    Despite over 40 years of regulation related to floating cabins, the 
number of floating cabins on the Tennessee River System continued to 
increase. In determining what action to take with respect to floating 
cabins, TVA prepared an Environmental Impact Statement (EIS) in 
accordance with the National Environmental Policy Act. This EIS 
assessed the environmental and socioeconomic impacts of different 
policies to address the proliferation of floating cabins on the 
Tennessee River System. TVA released a draft of this EIS for public 
comment in June 2015 and held four public meetings and a webinar to 
provide information about its analyses and to facilitate public 
involvement. The final EIS and associated documents can be found at 
https://www.tva.com/floatingcabins.
    After considering the comments received during the EIS process and 
the analyses of impacts, TVA identified as its preferred policy one 
that establishes standards to ensure safer mooring, electrical 
connections, and protection of water quality. Under the preferred 
policy, the mooring of new floating cabins would be prohibited on the 
Tennessee River System. The preferred policy would have required all 
existing floating cabins, including nonnavigable houseboats, to be 
removed from the Tennessee River System by January 1, 2036, and be 
subject to a regulatory program in the interim. On May 5, 2016, the TVA 
Board of Directors adopted the preferred policy, except the Board 
extended the removal date to May 5, 2046.
    On December 16, 2016, Congress enacted the Water Infrastructure 
Improvements for the Nation Act of 2016 (WIIN Act). Section 5003 
related to floating cabins and amended the TVA Act to include Section 
9b (16 U.S.C. 831h-3). This new section of the TVA Act provides that 
TVA may approve and allow the use of floating cabins on waters under 
the jurisdiction of TVA as of December 16, 2016, if the floating cabin 
is maintained to reasonable health, safety, and environmental standards 
as required by the TVA Board of Directors and if the owner pays a 
compliance fee if assessed by TVA. The WIIN Act stipulates that TVA may 
not require the removal of a floating cabin that was located on the 
Tennessee River System as of December 16, 2016: (1) for a period of 15 
years if it was granted a permit by TVA before enactment, or (2) for a 
period of 5 years if it was not granted a permit by TVA before 
enactment. It further stipulates that TVA

[[Page 104879]]

may establish regulations to prevent the construction of new floating 
cabins.

Previous Floating Cabins Amendments to TVA's Section 26a Regulations

    TVA published ``Phase I'' rule amendments for floating cabins that 
became effective on October 1, 2018. These amendments clarified the 
types of structures that TVA will regulate as a floating cabin and 
prohibited new floating cabins from mooring on the Tennessee River 
System after December 16, 2016. TVA estimates that approximately 2,200 
floating cabins were moored on the Tennessee River System on December 
16, 2016.
    TVA published ``Phase II'' rule amendments for floating cabins that 
became effective on October 12, 2021. These amendments included health, 
safety, environmental, and permitting standards that apply to all 
floating cabins and a deadline by which floating cabin owners were to 
apply to TVA for a Section 26a permit. A diverse stakeholder group 
composed of 18 members advised TVA on the development and drafting of 
these standards. Owners of floating cabins were given until October 1, 
2024, to comply with the standards in TVA's regulations and submit a 
complete permit application that certifies compliance and includes the 
payment of a Section 26a permit application fee. The permit application 
submission date of October 1, 2024, gave owners approximately three 
years from the effective date of the new standards to bring structures 
into compliance.

Final Rule

    The final rule for floating cabins applies to all existing floating 
cabins, including those formerly referred to as nonnavigable houseboats 
originally permitted on or before February 15, 1978. All floating 
cabins and attached structures must comply with the standards in TVA's 
regulations and submit a complete Section 26a permit application that 
certifies compliance and includes the payment of a permit application 
fee by October 1, 2029. TVA will not require floating cabin owners to 
pay the initial permit application fee if they possess a permit in 
their name issued before December 16, 2016, and the structure is 
compliant with the terms of the permit, constructed in accordance with 
the permit (same dimensions, attached structures such as docks, and 
utility connections), and moored at the permitted location.
    TVA's Section 26a regulations previously required floating cabins 
to comply with the standards and apply for a new permit by October 1, 
2024. This final rule extends that time until October 1, 2029. TVA has 
encouraged floating cabin owners to bring floating cabins into 
compliance and then apply for a permit without delay. TVA may deny an 
initial application for a floating cabin if it is submitted after the 
deadline of October 1, 2029.
    Upon submission of the application, owners of floating cabins may 
remain in place until TVA acts on the application. If TVA approves the 
application, TVA will issue a Section 26a permit to the owner. If TVA 
denies the application, the owner must remove the structure in 
accordance with Section 9b of the TVA Act and 18 CFR 1304.406.

Rebuilding

    This final rule also clarifies language on rebuilding floating 
cabins. Any alterations to the dimensions or approved plans for an 
existing floating cabin (monolithic frame or attached structure) are 
deemed a structural modification and require written approval from TVA.

Electrical

    Floating cabins can pose a threat to public safety due to unsafe 
electrical systems. TVA is aware that floating cabins are currently 
obtaining electricity from the shore via underwater cables, through 
onboard portable generators, and by other methods. When the final Phase 
II rule on floating cabins was published in 2021, TVA was not aware of 
any local, state, or federal entity that monitored the construction of 
floating cabins and enforced building codes. However, after working 
with multiple state agencies, it became clear that state and local 
entities have the ability and expertise to regulate and inspect 
electrical requirements for floating cabins within their jurisdiction. 
Separate standards in TVA's Section 26a regulations have potential to 
create confusion for floating cabin owners about applicable 
requirements.
    This final rule does not change the requirement that floating cabin 
owners comply with all applicable federal, state, and local laws and 
regulations regarding electrical wiring and equipment. If a floating 
cabin is documented to be in violation of any federal, state, or local 
electrical standard or regulation by the respective regulatory agency, 
TVA may revoke the permit and require removal of the floating cabin 
from the Tennessee River System if the violation is not corrected as 
specified by the relevant regulatory agency in accordance with the 
agency's requirements. The final rule removes the separate electrical 
standards for floating cabins from the Section 26a regulations and 
removes the requirement that floating cabin owners submit a 
certification of compliance to TVA every even-numbered year. This 
appropriately recognizes that state and local agencies are best 
equipped to adopt and enforce electrical standards for floating cabins 
while reinforcing that compliance with those other agency standards is 
a condition of the Section 26a permit. This final rule also clarifies 
that applicants must provide documentation, upon TVA's request, that 
demonstrates the floating cabin is in compliance with applicable 
wastewater and electric standards. In the event that a floating cabin 
owner fails to provide satisfactory evidence of compliance upon 
request, TVA may revoke the Section 26a permit and require removal of 
the floating cabin from the reservoir.

Other Changes to Section 26a Regulations

    In addition to the changes affecting floating cabins listed above, 
this final rule provides other minor amendments to the Section 26a 
regulations. These include minor edits for clarity and consistency in 
the regulations. This includes a clarification that TVA's issuance of a 
Section 26a permit for any proposed facility or obstruction does not 
mean the proposed facility or obstruction has been deemed safe by TVA. 
TVA is also clarifying that TVA may proceed with the review of a 
Section 26a application absent the submission of some of the 
application materials identified in 18 CFR 1304.2.

Comments on the Proposed Rule and TVA's Responses

    TVA published the proposed rule for public review and comment in 
the Federal Register on August 29, 2024 (89 FR 70145). TVA received six 
comments during the public review period, all via email, from six 
individuals. Only three of the comments provided input on the proposed 
rule. The other three comments posed questions about individual 
floating cabins. The following discussion describes a summary of the 
comments received and provides TVA's response to the comments. TVA 
appreciates the perspectives, interests, and concerns expressed by all 
commenters. After careful consideration of all comments received, TVA 
is finalizing the rule as proposed.

1. Comment Related to Wastewater

    Comment: One commenter stated that graywater discharge was not 
included in the regulations and referenced rumors

[[Page 104880]]

about only the discharge of untreated sewage being prohibited.
    TVA Response: Discharges of blackwater and graywater are regulated 
by the EPA and the state agencies that are responsible for issuing 
National Pollutant Discharge Elimination System permits for facilities 
that discharge sewage or other wastewater. Pursuant to Section 401 of 
the Clean Water Act, if a structure or activity for which federal 
approval is sought may result in any discharge into navigable waters of 
the United States, then the applicant must also request certification 
from the relevant state certifying agency when applying for a Section 
26a permit. If the certifying agency denies certification on 
appropriate grounds, TVA will not be able to issue the Section 26a 
permit. If the certifying agency grants certification with appropriate 
conditions, those conditions are required to be incorporated in the 
Section 26a permit. If the conditions of that certification are 
violated or TVA is notified of an unresolved violation by one of these 
regulatory agencies, TVA is authorized to revoke the Section 26a permit 
and require removal of the floating cabin in compliance with the WIIN 
Act.

2. Comment Related to the Sunset Period in the TVA Board Policy, WIIN 
Act, and Flotation Deadline

    Comment: One commenter expressed concern about the extension as it 
relates to the original TVA Board of Directors (Board) Policy sunset 
date of May 15, 2046, the section of the WIIN Act that addresses 
removal of floating cabins, and the December 31, 2031, deadline to 
remove unencased flotation. There appears to be confusion around these 
deadlines.
    TVA Response: There are several different dates that are relevant 
to maintaining floating cabins on the Tennessee River System based on 
the TVA Act and TVA's Section 26a regulations. On May 5, 2016, the TVA 
Board adopted a policy that would have required all existing floating 
cabins to be removed from the Tennessee River System by May 5, 2046 
(sunset period).
    On December 16, 2016, Congress enacted the Water Infrastructure 
Improvements for the Nation Act of 2016 (WIIN Act), which related to 
floating cabins and amended the TVA Act to include Section 9b. This new 
section of the TVA Act removed the 30-year sunset period and provided 
that floating cabins that were located on waters under the jurisdiction 
of TVA as of December 16, 2016, may remain if the floating cabin is 
maintained to reasonable health, safety, and environmental standards as 
required by TVA. The WIIN Act further stipulated that TVA may not 
require the removal of a floating cabin that was located on the 
Tennessee River System as of December 16, 2016: (1) for a period of 15 
years if it was granted a permit by TVA before the WIIN Act's 
enactment, or (2) for a period of five years if it was not granted a 
permit by TVA before the WIIN Act's enactment.
    TVA's Section 26a regulations include a deadline of December 31, 
2031, when all unencased flotation must be removed and replaced with 
flotation commercially manufactured for marine use and consistent with 
standards defined in the regulations. This requirement applies to all 
water-use facilities permitted by TVA, including floating cabins.
    This final rule requires floating cabin owners to comply with the 
regulations and apply for a permit no later than October 1, 2029. Any 
permit issued will be contingent upon compliance with the flotation 
rule by December 31, 2031. The Board sunset period no longer applies. 
The WIIN Act removal date for floating cabins that were not granted a 
permit before the WIIN Act has already passed; TVA may not require the 
removal of previously permitted floating cabins until December 16, 
2031.

3. Comments in Support of the Final Rule

    Comment: Two commenters expressed general support for the final 
rule amendments, particularly the extension of the compliance and 
application deadline.
    TVA Response: TVA acknowledges these comments and agrees with the 
need for the extension and to avoid confusion around electrical 
requirements.

4. Questions About Floating Cabins

    Comment: Three commenters posed questions about the proposal, 
including questions on individual floating cabins and the corresponding 
deadlines for electrical standards.
    TVA Response: Questions about individual floating cabins and 
compliance may be directed to TVA at [email protected].

Administrative Requirements

A. Unfunded Mandates Reform Act, National Environmental Policy Act, and 
Various Executive Orders Including E.O. 12866, Regulatory Planning and 
Review; E.O. 12898, Federal Actions To Address Environmental Justice in 
Minority Populations and Low-Income Populations; E.O. 13045, Protection 
of Children From Environmental Health Risks; E.O. 13132, Federalism; 
E.O. 13175, Consultation and Coordination With Indian Tribal 
Governments; E.O. 13211, Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, and Use; E.O. 12988, 
Civil Justice Reform Act; and E.O. 14094, Modernizing Regulatory Review

    In determining what action to take with respect to floating cabins, 
TVA prepared an Environmental Impact Statement (EIS) in accordance with 
the National Environmental Policy Act. This EIS assessed the 
environmental and socioeconomic impacts of different policies to 
address the proliferation of floating cabins on the Tennessee River 
System. TVA released a draft of this EIS for public comment in June 
2015 and held four public meetings and a webinar to provide information 
about its analyses and to facilitate public involvement. The final EIS 
and associated documents can be found at https://www.tva.com/floatingcabins.
    This final rule contains no federal mandates for state, local, or 
tribal government or for the private sector. TVA has determined it will 
not have a significant annual effect of $200 million or more or result 
in expenditures of $200 million in any one year by state, local, or 
tribal governments or by the private sector. This final rule will not 
have a substantial direct effect on the States or Indian tribes, on the 
relationship between the Federal Government and the States or Indian 
tribes, or on the distribution of power and responsibilities between 
the Federal Government and States or Indian tribes. Nor will this final 
rule have concerns for environmental health or safety risks that may 
disproportionately affect children, have significant effect on the 
supply, distribution, or use of energy, or disproportionally impact 
low-income or minority populations. Unified development and regulation 
of the Tennessee River System through an approval process for 
obstructions across, along, or in the river system and management of 
United States-owned land entrusted to TVA are federal functions for 
which TVA is responsible under the TVA Act, as amended. In general, 
this final rule updates TVA's regulations relating to the standards 
that

[[Page 104881]]

floating cabins will be required to meet in order to remain on the 
Tennessee River System. Absent a request for these services for a 
Section 26a permit, no entity or individual would be forced to pay a 
charge. None of the charges would be applied retroactively. TVA will 
continue to appropriately review specific requests in accordance with 
applicable laws, regulations, and Executive Orders.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 605, TVA is required 
to prepare a regulatory flexibility analysis unless the head of the 
agency certifies that the proposal will not have a significant economic 
impact on a substantial number of small entities. TVA's Chief Executive 
Officer has certified that this rule will not have a significant 
economic impact on a substantial number of small entities. The statute 
defines ``small entity'' as a ``small business,'' ``small 
organization'' (further defined as a ``not-for-profit enterprise''), or 
a ``small governmental jurisdiction.'' Most floating cabins are owned 
by individuals and not businesses, not-for-profit enterprises, or small 
governmental jurisdictions, and therefore relatively few ``small 
entities'' will be affected by TVA's proposal. Even if the final rule 
tangentially impacts marinas that accommodate floating cabins, a 
relatively small number of marinas will be impacted. Accordingly, this 
rule will not have a significant impact on a substantial number of 
small entities; no regulatory flexibility analysis is required; and 
TVA's Chief Executive Officer has made the requisite certification.

C. Paperwork Reduction Act

    Title of Information Collection: Section 26a Permit Application.
    OMB Approval Number: 3316-0060.
    This rule contains information collection requirements for 
registration and permitting of floating cabins, which were approved by 
the Office of Management and Budget (OMB) on July 31, 2024.

List of Subjects in 18 CFR Part 1304

    Administrative practice and procedure, Natural resources, 
Navigation (water), Rivers, Water pollution control.

    For the reasons set out in the preamble, the Tennessee Valley 
Authority amends 18 CFR part 1304 as follows:

PART 1304--APPROVAL OF CONSTRUCTION IN THE TENNESSEE RIVER SYSTEM 
AND REGULATION OF STRUCTURES AND OTHER ALTERATIONS

0
1. The authority citation for 18 CFR Part 1304 continues to read as 
follows:

    Authority:  16 U.S.C. 831-831ee.

0
2. Amend Sec.  1304.2 by:
0
a. Revising the first sentence of paragraph (b);
0
b. Adding a sentence at the end of paragraph (c); and
0
c. Adding paragraph (e).
    The revision and additions read as follows:

Sec.  1304.2  Application.

* * * * *
    (b) Applications shall be submitted on TVA's online application 
system or addressed to the Tennessee Valley Authority, at the 
appropriate location as listed on the application and on TVA's website. 
* * *
    (c) * * * TVA, in its sole discretion, may proceed with the review 
of an application in the absence of some materials listed in this 
section.
* * * * *
    (e) TVA's issuance of a permit does not mean that TVA has 
determined a facility or obstruction is safe for any purpose or that 
TVA has any duty to make such a determination. In issuing a permit, TVA 
assumes no liability to the applicant or to any third party for any 
damages to property or personal injuries arising out of or in any way 
connected with applicant's construction, operation, or maintenance of 
the permitted facility.

0
3. Amend Sec.  1304.100 by:
0
a. Revising the seventh sentence; and
0
b. Adding a sentence after the seventh sentence.
    The revision and addition read as follows:

Sec.  1304.100  Scope and intent.

    * * * Existing floating cabins may remain moored on the Tennessee 
River System provided they remain in compliance with the rules in this 
part and obtain a section 26a permit from TVA issued after October 12, 
2021. Existing floating cabins that do not apply for a permit by the 
deadline in this part or do not remain in compliance with the rules in 
this part are subject to the removal provisions of this part and 
section 9b of the TVA Act.* * *

0
4. Amend Sec.  1304.101 by:
0
a. Revising paragraph (c);
0
b. Revising paragraph (h)(2) introductory text;
0
c. Revising paragraph (h)(3); and
0
d. Revising paragraph (i)(3).
    The revisions read as follows:

Sec.  1304.101  Floating cabins.

* * * * *
    (c) All floating cabins shall comply with the rules contained in 
this part and make application for a section 26a permit by October 1, 
2029. TVA may, at its sole discretion, deny an initial application for 
a floating cabin submitted after this date. Unpermitted structures are 
subject to the removal provisions of this part and section 9b of the 
TVA Act.
* * * * *
    (h) * * *
    (2) Any alterations to the dimensions or approved plans for an 
existing floating cabin (monolithic frame or attached structure) shall 
be deemed a structural modification and shall require prior written 
approval from TVA. All expansions in length, width, or height are 
prohibited, except under the following circumstances if approved in 
writing in advance by TVA. Structural modifications to attached 
structures are subject to Sec.  1304.101(i).
* * * * *
    (3) Owners must submit an application to TVA sixty (60) days in 
advance of proposed rebuilding of an entire or significant portion of a 
floating cabin (monolithic frame or attached structures). The owner 
shall not begin construction until prior written acknowledgment from 
TVA is received. Plans for removal of the existing floating cabin or 
portions to be rebuilt shall be acknowledged in writing by TVA before 
removal occurs, and the removal shall be at the owner's expense before 
construction of the rebuild may begin. The owner shall provide evidence 
of approval from the marina operator to rebuild within the approved 
harbor limits of a commercial marina. TVA may require a new permit for 
the proposed rebuilding. Construction of the rebuilt floating cabin 
must be completed within 18 months. The rebuilt monolithic frame of the 
floating cabin shall match the exact configuration and dimensions 
(length, width, and height) of both the total monolithic frame and the 
enclosed and open space as approved by TVA; attached structures are 
subject to Sec.  1304.101(i). The footprint of the attached structures 
shall not be incorporated into the footprint of the monolithic frame of 
the floating cabin.
* * * * *
    (i) * * *
    (3) Attached structures shall not exceed 14 feet in height from the 
lowest floor level, shall not be enclosed, shall

[[Page 104882]]

not be connected to the monolithic frame by a single roofline, and 
shall comply with Sec.  1304.204(p).
* * * * *

0
5. Amend Sec.  1304.103 by:
0
a. Revising paragraph (a);
0
b. Revising paragraph (d); and
0
c. Removing paragraph (e).
    The revisions read as follows:

Sec.  1304.103  Health, safety, and environmental standards.

    (a) Wastewater. Floating cabins shall comply with Sec.  1304.2(d) 
with regard to discharges into navigable waters of the United States. 
All discharges, sewage, and wastewater, and the pumping, collection, 
storage, transport, and treatment of sewage and wastewater shall be 
managed in accordance with all applicable federal, state, and local 
laws and regulations (satisfactory evidence of compliance to be 
provided to TVA upon request). Upon receipt of documentation that a 
floating cabin is in violation of any federal, state, or local 
discharge or water quality regulation by the respective regulatory 
agency or upon failure to provide satisfactory evidence of compliance 
at TVA's request, TVA is authorized to revoke the permit and require 
removal of the floating cabin from the Tennessee River System if the 
violation is not corrected as specified by the regulatory agency in 
accordance with the agency's requirements or if satisfactory evidence 
of compliance is not provided to TVA.
* * * * *
    (d) Electrical. Floating cabins shall comply with all applicable 
federal, state, and local laws and regulations regarding electrical 
wiring and equipment (satisfactory evidence of compliance to be 
provided to TVA upon request). Upon receipt of documentation that a 
floating cabin is in violation of any federal, state, or local 
electrical standard or regulation by the respective regulatory agency 
or upon failure to provide satisfactory evidence of compliance at TVA's 
request, TVA is authorized to revoke the permit and require removal of 
the floating cabin from the Tennessee River System if the violation is 
not corrected as specified by the regulatory agency in accordance with 
the agency's requirements or if satisfactory evidence of compliance is 
not provided to TVA. Floating cabins shall comply with Sec.  
1304.209(c)(2).

Michael McCall,
Vice President, Environment and Sustainability.
[FR Doc. 2024-30420 Filed 12-23-24; 8:45 am]
BILLING CODE 8120-08-P
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